SBA Economic Disaster Loan Program Open

Despite the tense partisan atmosphere leading up to President Trump's re-election, Senate Republicans have pushed through a new piece of legislation aimed at replenishing the depleted funds of the Small Business Administration's (SBA) disaster loan program, a critical resource for businesses and homeowners affected by natural disasters. The bill, titled the Restoring an Economic Lifeline with Immediate Emergency Funding (RELIEF) Act, was spearheaded by Senator Thom Tillis (R-N.C.) and co-sponsored by Senators Ted Budd (R-N.C.), Tim Scott (R-S.C.), Bill Cassidy (R-La.), and Rick Scott (R-Fla.).

In anticipation of President Trump's re-election, the group of Republican Senators proposed legislation to inject $550 million into the SBA's disaster loan program, which would provide approximately $2.48 billion in lending capacity projected to last until the end of 2024. This move comes in response to the program's recent financial exhaustion following the devastating impacts of Hurricanes Helene and Milton.

The bill's urgency is underscored by concerns from Biden administration officials, who have warned that the disaster loan program's funds were at risk of running out before Congress reconvenes. Despite their concerns, no action has been taken. The depletion of funds raised alarms about potential delays in processing loans for those affected by the hurricanes, which could hinder their recovery efforts.

"The past four years have been devastating for small businesses," stated Craig Pisaris-Henderson, Chairman of the Economic Recovery Center. "Millions of Americans have been struggling the past few years with a declining economy and left waiting years for their COVID-era ERTC relief claims to be paid. Without SBA EIDLs (Economic Injury Disaster Loans) or access to other federal disaster funding, there is little chance of their financial survival."

In an effort to provide additional 'hope' to American businesses in need of SBA funding assistance, the Economic Recovery Center launched www.MyEIDL.com. The site provides those impacted by disasters professional navigational and packaging services to ensure all correct documents needed to qualify for SBA and other private funding programs are appropriately submitted.

Further emphasizing the importance of swift action, Senator Tillis stated that the exhaustion of the program's funds "risks delays in processing the loans of those affected by Helene and Milton and their ability to get their lives back on track." He added that the RELIEF Act is just the first step, and he looks forward to working across party lines to pass a more comprehensive disaster aid package that will ensure long-term support for victims of these and future disasters.

This legislation directly responds to lawmakers' and the public's growing concerns about the SBA's ability to continue providing disaster relief loans. A group of GOP senators recently pressed SBA officials for more transparency regarding the program's funding lapse and the rate at which funds were being spent, further highlighting the need for immediate action.

With Congress set to return next month, the RELIEF Act will be a key focus for lawmakers looking to restore the SBA's disaster loan program and ensure that those affected by natural disasters can access the financial assistance they need to rebuild their lives and businesses.

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SOURCE Economic Recovery Center